Which of the Following Items Would Be Included in GDP

question 172

Multiple Choice

Which of the following items would be included in GDP?

• A)Purchase of new military aircraft by the government.
• B)Welfare payments.
• C)The value of domestic services provided by homemakers in the home.
• D)None of the choices would be included in GDP.

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Definitions:

Surpluses

Situations in which the quantity of a product or service supplied exceeds the quantity demanded, or when revenues exceed expenditures in a budget.

Tax Expenditures

Governmental financial benefits conferred through tax policies, allowing individuals or corporations to reduce their tax liabilities through deductions, exemptions, or credits.

Means-tested Benefit

Government assistance programs that provide benefits based on the recipient's income and assets, ensuring aid goes to those in financial need.

Entitlement

A government program guaranteeing access to benefits by members of a specific group and based on established rights or by legislation.